The Canadian Press - ONLINE EDITION

PotashCorp and Mosaic settle dispute over Esterhazy mine production

  • Print

SASKATOON - Potash Corp. of Saskatchewan Inc. (TSX:POT) has settled a lawsuit with U.S.-based rival Mosaic that resolves a dispute over ownership of production from the Esterhazy mine in southeastern Saskatchewan.

The two producers have clashed over production from the mine for several years, with the Saskatchewan-based PotashCorp claiming it is owed the processed potash ore under an agreement originally reached in 1971 that stipulates Mosaic send it 1.1 million tonnes from the mine per year.

"This settlement provides PotashCorp and its stakeholders with certainty through 2012 and dovetails with our ongoing potash expansion program, which will increase operational capability to 17.1 million tonnes by 2015," PotashCorp president and CEO Bill Doyle said in a statement.

Under the settlement announced Thursday, Minnesota-based Mosaic will deliver tonnage owed to PotashCorp for 2011 and 2012 — which PotashCorp has claimed is worth more than $1 billion over the final two years of the agreement.

At the end of 2102, production capacity from Esterhazy will be reallocated to Mosaic. The settlement also dismisses a counterclaim from Mosaic.

PotashCorp is the world's largest fertilizer producer. The company became the target of a nearly US$40-billion hostile takeover offer by Anglo-Australian mining giant BHP Billiton in 2010 that ultimately was rejected by the federal government rejected the offer on the grounds it was not of net benefit to Canada. BHP withdrew its bid shortly thereafter.

Saskatchewan has the world's largest deposits of potash, a valuable mineral mainly used in fertilizer.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Jets This Week: Predicting the line-ups

View more like this

Photo Store Gallery

  • Marc Gallant/Winnipeg Free Press. Local- Peregrine Falcon Recovery Project. Baby peregrine falcons. 21 days old. Three baby falcons. Born on ledge on roof of Radisson hotel on Portage Avenue. Project Coordinator Tracy Maconachie said that these are third generation falcons to call the hotel home. Maconachie banded the legs of the birds for future identification as seen on this adult bird swooping just metres above. June 16, 2004.
  • A pelican comes in for a landing Wednesday afternoon on the Red River at Lockport, Manitoba - Standup photo- June 27, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Are you worried Ebola might make its way to Canada?

View Results

View Related Story

Ads by Google